This Will Unfold Slowly… Until the Day it Doesn’t
In the business of research and publishing, I do a lot of reading. In 2016, I’ve come across many of the 2016 election headlines, and even I am surprised by just how over-the-top the media has been in supporting the coronation of Hillary Clinton to the presidency.
Most have always known there was a bias, but what we saw during the primary and general election is nothing short of a rigged election.
I hope that this will wake up millions of Americans so that they will then begin to make the connection to the rest of the trumped up news that is pushed out, specifically economic news.
The government and mainstream press have relentlessly tried to make the case that the economy is improving, but in reality, the 2008 downturn is still very much alive.
Adjusted for inflation, the stock market is not near an all-time high – it’s actually down 10% since the year 2000.
Unemployment isn’t at 5%, and it’s a joke for anyone to even claim this number. Every month, the media reports the numbers the government spits out like it was Moses coming down from the mountain with two tablets.
Gallup, who is a polling company that is paid to accurately poll, has the current U.S. unemployment rate at 12.8%, more than double what the Bureau of Labor Statistics (ministry of propaganda) is reporting.
Future Money Trends, as seen in our micro-documentary, Economic Collapse for Dummies, believes that the natural force for the U.S. economy is deflation. However, the Federal Reserve and U.S. Government are going to fight this economic reality to the death, with the death meaning an eventual currency collapse.
I think we are nearing the end game here for the FED, and we consider the next 1 to 5 years to be extremely dangerous for complacent investors.
Baby Boomers are beginning to retire in large numbers, and with this comes lower incomes (lower tax revenue and higher entitlement spending), less discretionary spending, and most importantly, the sale of stocks held inside of their retirement accounts.
All of this is a disaster for anyone trying to fend off deflation…
We certainly wouldn’t short the U.S. stock market here, but for the major indexes, we believe there is very limited upside here.
Extreme volatility is likely, too, with systemic problems present in all of the largest banks in the world, the entire E.U. block, and a global dependency on negative- to zero-percent interest rates.
As Ray Dalio put it last week, “it would only take a 1% rise in Treasury yields to trigger the worst price decline in bonds since the 1981 bond market crash. And since those interest rates are embedded in the pricing of all investment assets, that would send them all much lower.”
As crazy as it sounds, just a 1% increase in interest rates would lead to trillions in losses!
I know it’s tempting to try and short this market, but don’t. In our opinion, it’s just too risky.
Instead of shorting it, we suggest a sizable cash position, held in actual currency, like the U.S. dollar and physical gold.
Markets are heavily manipulated, and a currency crisis could spark a much higher price of stocks, since these assets are real and will have to be revalued with a falling currency.
Although we see a nasty deflation prior to a currency crisis, the timing on any of this is impossible to predict.
The safest way to short the stock market, in our opinion, is to just hold cash. IF stocks see a significant move down, you’ll be able to acquire more by using that cash position.
As for the currency risk itself, for now, the U.S. dollar is king, or as we often refer to it, the tallest midget in the room. So if you’re going to hold a currency, the dollar should be at the top of your list, along with gold.
Ideally, for your U.S. dollar storage, we prefer specialized whole life insurance policies, focused purely on cash value – not life insurance. Banks will see bail-ins and withdrawal limits during the next crisis, so mutual insurance companies who pay out dividends to their whole life holders are far safer and more trustworthy than a large bank.
There will come a time when the U.S. dollar has a crisis and trillions from overseas come flooding back to the homeland for products and services. This will create massive price inflation for Americans, but that day is still a ways off, considering all the problems in Europe and Asia.
Of course, that’s why we also want to hold some gold as part of our cash position. Because if it escalates quickly into a currency bubble bursting, the gold you own will go a long way.